Chapter 2 Flashcards
Tax bills are handled by which committee in the U.S. House of Representatives?
A. Taxation Committee B. Ways and Means Committee C. Finance Committee D. Budget Committee E. None of these
B. Ways and Means Committee
Federal tax legislation generally originates in what body?
A. Internal Revenue Service B. Senate Finance Committee C. House Ways and Means Committee D. Senate Floor E. None of these
C. House Ways and Means Committee
Subtitle A of the Internal Revenue Code covers which of the following taxes?
A. Income taxes B. Estate and gift taxes C. Excise taxes D. Employment taxes E. All of these
A. Income taxes
In S 212(1), the number (1) stand for the:
A. Section number B. Subsection number C. Paragraph designation D. Subparagraph designation E. None of these
C. Paragraph designation
Which of these is not correct citation to the Internal Revenue Code?
A. Section 211 B. Section 1222(1) C. Section 2(a)(1)(A) D. Section 280B E. All of these are correct cites.
E. All of these are correct cites.
Which of the following is not an administrative source of tax law?
A. Field Service Advice B. Revenue Procedure C. Technical Advice Memoranda D. General Counsel Memorandum E. All of these are administrative sources
E. All of these are administrative sources
Which of the following types of Regulations has the highest tax validity?
A. Temporary B. Legislative C. Interpretive D. Procedural E. None of these
B. Legislative
Which statement is not true with respect to a Regulation that interprets the tax law?
A. Issued by the U.S. Congress
B. Issued by the U.S. Treasury Department
C. Designed to provide an interpretation of the tax law.
D. Carries more legal force than a Revenue Ruling.
E. All of these statements are true.
A. Issued by the U.S. Congress
In addressing the importance of a Regulation, an IRS agent must:
A. Give equal weight to the Code and the Regulations.
B. Give more weight to the Code rather than to a Regulation.
C. Give more weight to the Regulation rather than to the Code.
D. Give less weight to the Code rather than to a Regulation
E. None of these
A. Give equal weight to the Code and the Regulations.
Which item cannot be cited as a precedent?
A. Regulations B. Temporary Regulations C. Technical Advice Memoranda D. U.S. District Court Decision E. None of these
C. Technical Advice Memoranda
What statement is not true with respect to Temporary Regulations?
A. May not be cited as a precedent. B. Issued as Proposed Regulations. C. Automatically expire within three years after the date of issuance. D. Found in the Federal Register E. All of these statements are true.
A. May not be cited as a precedent.
What administrative release deals with a proposed transaction rather than a completed transaction?
A. Letter Ruling B. Technical Advice Memorandum C. Determination Letter D. Field Service Advice E. None of these
A. Letter Ruling
Which of the following indicates that a decision has precedential value for further cases?
A. Stare decisis B. Golsen doctrine C. En banc D. Reenactment doctrine E. None of these
A. Stare decisis
A taxpayer who loses in a U.S. District Court may appeal directly to the:
A. U.S. Supreme Court B. U.S. Tax Court C. U.S. Court of Federal Claims D. U.S. Circuit Court of Appeals E. All of these
D. U.S. Circuit Court of Appeals
If a taxpayer decides not to pay a tax deficiency, he or she must go to which court?
A. Appropriate U.S. Circuit Court of Appeals. B. U.S. District Court C. U.S. Tax Court D. U.S. Court of Federal Claims E. None of these
C. U.S. Tax Court
A jury trial is available in the following trial court:
A. U.S. Tax Court B. U.S. Court of Federal Claims C. U.S. District Court D. U.S. Circuit Court of Appeals E. None of these
C. U.S. District Court
A taxpayer may not appeal a case from which court:
A. U.S. District Court B. U.S. Circuit Court of Appeals C. U.S. Court of Federal Claims D. Small Case Division of the U.S. Tax Court E. None of these
D. Small Case Division of the U.S. Tax Court
Which publisher offers the Standard Federal Tax Reporter?
A. Research Institute of America B. Commerce Clearing House C. Prentice-Hall D. LexisNexis E. None of these
B. Commerce Clearing House
Which is presently not a major tax service?
A. Standard Federal Tax Reporter B. Federal Taxes C. United States Tax Reporter D. Tax Management Portfolios E. All of these are major tax services
B. Federal Taxes
Which publisher offers the United States Tax Reporter?
A. Research Institute of America B. Commerce Clearing House C. LexisNexis D. Tax Analysts E. None of these
A. Research Institute of America
When searching an online tax service, which approach is more frequently used?
A. Code section approach B. Keyword approach C. Table of contents approach D. Index E. All are about the same
B. Keyword approach
A researcher can find tax information on home page sites of:
A. Governmental bodies B. Tax academics C. Publishers D. CPA firms E. All of these
E. All of these
Tax research involves which of the following procedures:
A. Identifying and refining the problem
B. Locating the appropriate tax law sources
C. Assessing the validity of the tax law sources
D. Follow-up
E. All of these
E. All of these
Which tax-related website probably gives the best policy-orientation results?
A. taxalamanac.org B. irs.gov C. taxsites.com d. taxanalysts.com E. usataxcourt.gov
D. taxanalysts.com
Which court decision would probably carry more weight?
A. Regular U.S. Tax Court decision B. Reviewed U.S. Tax Court decision C. U.S. District Court decision D. Tax Court Memorandum decision E. U.S. Court of Federal Claims
B. Reviewed U.S. Tax Court decision
Which regulations have the force and effect of law?
A. Procedural Regulations B. Finalized Regulations C. Legislative Regulations D. Interpretive Regulations E. All of these
C. Legislative Regulations
Which items tell taxpayers the IRS’s reaction to certain court decisions?
A. Notices B. Revenue Procedures C. Revenue Rulings D. Actions on Decisions E. Legislative Regulations
D. Actions on Decisions
Which court decision carries more weight?
A. Federal District Court B. Second Circuit Court of Appeals C. U.S. Tax Court decision D. Small Cases Division of U.S. Tax Court E. U.S. Court of Federal Claims
B. Second Circuit Court of Appeals
Which company does not publish citators for tax purposes?
A. John Wiley & Sons B. Commerce Clearing House C. Research Institute of America D. Westlaw E. Shepard's
A. John Wiley & Sons
Which is not a primary source of tax law?
A. Notice 89-99, 1989-2 C.B. 422. B. Estate of Harry Holmes v. Comm., 326 U.S. 480 (1946) C. Rev. Rul. 79-353, 1979-2 C.B. 325. D. Prop. Reg. S 1.7524T(f). E. All of these are primary sources.
D. Prop. Reg. S 1.7524T(f).
Which statement is incorrect with respect to taxation on the CPA exam?
A. The CPA exam now has only four parts.
B. There are no longer case studies on the exam.
C. A candidate may not go back after exiting a testlet
D. Simulations include a four-function pop-up calculator.
E. None of these are incorrect.
B. There are no longer case studies on the exam.
The Internal Revenue Code was first codified in what year?
A. 1913 B. 1923 C. 1939 D. 1954 E. 1986
C. 1939
